On Thursday, July 18, 2024, the Midland Daily News reported that U.S. District Court Judge Thomas L. Ludington recused himself from presiding over two lawsuits filed by the Heron Cove Association against Midland and Gladwin counties.
The lawsuits were reassigned to U.S. District Court Judge Matthew F. Leitman. Judge Ludington’s recusal came after the plaintiffs in the suits filed a motion highlighting a potential conflict of interest due to Ludington’s residence on the former Sanford Lake, one of the properties affected by the special assessment approved by the two counties.
In his ruling, Judge Ludington acknowledged that any decision he made in the cases could be viewed as favoring his personal interests due to his ownership of a property located on Sanford Lake.
The Heron Cove Association, representing over 1,000 plaintiffs who own properties within the Four Lakes Special Assessment District, filed the lawsuits against Midland and Gladwin counties. The assessment district encompasses lands in both counties.
Through the lawsuits, the Heron Cove Association claims that the special assessment imposed by the county boards to fund the reconstruction of the Sanford, Edenville, Secord, and Smallwood dams amounts to an “unconstitutional taking” that violates property owners’ due process rights under the Michigan and U.S. Constitutions. All four dams were damaged in May 2020 when heavy rainfall caused them to breach and flood surrounding areas.
The suits argue that special assessments approved by the counties represent an unconstitutional taking of private property without just compensation, in violation of the Fifth Amendment of the U.S. Constitution.
Initially filed in circuit courts in Midland and Gladwin counties, the cases were later removed to the U.S. District Court for the Eastern District of Michigan in Bay City.
On July 9, the Four Lakes Task Force filed separate motions in federal court seeking dismissal of both lawsuits. The motions argue that the Heron Cove Association lacks standing to sue the counties. Additionally, the task force asserts that property owners were provided adequate due process regarding the special assessment and that appellants failed to show the assessment determinations were arbitrary. To expedite reconstruction work, the task force also requested expedited rulings on the dismissal requests.
The article provided details on the lawsuits, background on the formation of the Four Lakes Task Force following dam failures in 2020, costs of reconstruction work, and previous denial of an Heron Cove Association appeal challenging the special assessment in 2nd Circuit Court in June. The lawsuits and ongoing disputes over funding reflect tension within affected communities divided on how to finance critical infrastructure projects.
Source: Midland Daily News
